Even though it does not look this way now, I think this is a seminal legislation that in time will move small startup scene out of California for good, due to what you have described. I have the same experience, bootstrapping a software company that initially could not afford an employee payroll and administrative/legal burden. Where do we go next to start non-VC companies? Oregon? Texas?
What if you just incorporate in Delaware and contract remotely out of less restrictive states in the US? I think this will only apply to employees working within CA
